If the Efficient Output of Computers Is Achieved This Year

question 29

Multiple Choice

If the efficient output of computers is achieved this year, then market price of computers is equal to:

• A)the marginal social benefit of computers.
• B)the marginal social cost of computers.
• C)the total social benefit of computers.
• D)both (a) and (b) are correct

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Definitions:

Warranty Expense

Costs associated with the obligation of a company to repair, replace, or compensate for defective goods sold to customers.

Warranty Liability

Warranty liability is an obligation that a company assumes when it promises to repair or replace defective products during a specified period, representing a potential future expense.

Federal Unemployment Tax

A payroll tax paid by employers based on the wages paid to employees, used to fund state workforce agencies.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.